Financial statements for Stallings Company follow.

Required:

a$.$ Use horizontal analysis to determine which expense item increased by the highest percentage from Year $3$ to Year $4.$

b$.$ Use vertical analysis to determine whether the inventory balance is a higher percentage of total assets in Year $3$ or Year $4.$

c$.$ Calculate the following ratios for Year $3$ and Year $4.$ When data limitations prohibit computing averages, use year$-$end balances in

your calculations.

Net margin

Return on investment

Return on equity

Earnings per share

Price$-$earnings ratio $($market price per share at the end of Year $4$ and Year $3$ was $$12\mathrm{.}04$ and $$8\mathrm{.}86,$ respectively$)$

Book value per share of common stock

Times interest earned

Working capital

Current ratio

Acid$-$test ratio

Accounts receivable turnover

Inventory turnover

Debt to equity

Complete this question by entering your answers in the tabs below.

Calculate the following ratios for Year $3$ and Year $4.$ When data limitations prohibit computing averages, use year$-$end balances in your

calculations.

Note: Do not round intermediate calculations. Round your answers to $2$ decimal places.